Remember the Broken Window!

The debate over what kind of government spending will "stimulate" or not "stimulate" the economy is beside the point. As Bastiat taught us, and Henry Hazlitt reminded us, you have to consider what is "not seen"--what will not happen if the government borrows and spends scarce resources. That is all that really matters in this discussion. If some Keynesian replies that those resources will remain idle otherwise, ask why he or she is not inquiring into the government policies that make and keep productive resources idle. That would be a better use of time than lobbying for a bogus stimulus bill.

Cross-posted at Anything Peaceful.